Pricing research

Case Study: Large global payment processor

Client Issue

New interchange rates regulation resulted in price changes, impacting our client’s customer base across a range of sectors. While market share was maintained the client wanted to understand customer churn intention and willingness to consider new pricing models.

Solution

Davies Hickman worked closely with our clients sales, marketing and data analysis teams to design a project which would meet a range of complex project objectives. A key challenge was the design of the research methodology to understand both the client’s customers changing attitudes to payment processes, dismantling barriers to market-share growth, building brand awareness, understanding distinctive assets and competitors’ influences.

The research involved the following steps:

Scoping the research objectives with learnings from Executive interviews with ten High St brands t
Building alternative pricing models, using the latest market trends and behavioural science thinking shared and discussed with the cross-functional teams
Recruiting 600 SMEs to complete the research
Using conjoint analysis to understand interest in new models among the sample
Analysing results and creating an attitudinal segmentation of customers
Workshop with the client and further consulting

Outcome

The client was motivated by the findings. Some results confirmed the teams’ hunches about the shifts in the market, whilst other findings were surprising and contrary. The alternative pricing models component of the research created a lot of debate: what would work in the real world, what wouldn’t? Pilots have been launched. The data provided vital input into their proposition and pricing strategies. Overall, the insights supported the client in keeping its position as market leader during uncertain times.